New knowledge is created in the course of the application of outreach. Each complex problem in the real world is likely to have unique aspects and thus it requires some modification of standard approaches. Hence, each engagement in outreach is likely to have an element of inquiry and discovery, leading to new knowledge. The flow of knowledge is in both directions. In this article, the author presents the great importance of outreach to the university as well as to society. It is in the institution's self-interest to ensure substantial engagement in outreach by appropriate departments and colleges. [This article was originally published in: "Journal of Public Service and Outreach" v1 n2 p16-22 1996. For a commentary on this article, "Ernest Lynton and the Tyranny of Research," see EJ1097205.]